The Financial Services Authority of Indonesia (OJK) has introduced new regulations to strengthen its supervision over the country's financial sector. These new rules, including POJK No. 30/2024 on Financial Conglomerates and Parent Companies of Financial Conglomerates (KK PIKK), are aimed at improving the monitoring of financial groups controlled by the same entities.

This regulation updates and refines POJK No. 45/POJK.03/2020, ensuring that OJK can supervise these conglomerates more effectively. The new rules are part of Indonesia's effort to meet international standards while enhancing the strength and competitiveness of its financial sector. They also respond to the mandates of the Financial Sector Development and Strengthening Law (UU P2SK).

The goal of POJK KK PIKK is to give OJK better control over financial conglomerates by focusing on the parent companies that oversee these groups. The idea is that the parent company should be responsible for the management and consolidation of the financial conglomerate, allowing for a more streamlined and cohesive supervision.

This approach will not only help OJK regulate conglomerates more effectively but also support the overall health and stability of Indonesia’s financial ecosystem. It’s expected that these new rules will enhance Indonesia’s competitiveness on a global scale while ensuring the sector remains healthy and sustainable.

One of the most notable features of the new regulation is the requirement for conglomerates to establish a Parent Company of Financial Conglomerates (PIKK). This company will handle the consolidation of all group operations and oversee matters like ownership, governance, and changes within the conglomerate. There are also stricter rules on cross-ownership, as well as expanded powers for OJK to issue specific policies when needed.

In addition to the changes for financial conglomerates, OJK has also introduced POJK No. 31/2024, which outlines the authority to issue written orders. This regulation is designed to make OJK’s supervision of financial conduct more effective, ensuring that the market remains fair, transparent, and in line with Indonesia’s broader goals for financial stability and consumer protection.

With these new measures, OJK aims to support a financial sector that is not only more transparent and accountable but also better equipped to drive Indonesia’s economic growth in a competitive, sustainable, and equitable way.

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